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Where to put my savings?

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RecentGrad23
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Where to put my savings?  Reply with quote  

I am a recent college graduate with my first job now as an accountant that I have had for 5 months. I have started investing in my company 401k maxing the match, but I have started to save a bit much in my savings account. With that said, I am still living at home with my parents, and would like to start saving for "life", so to speak. Where should I be putting all of my savings right now? I don't trust enough to invest it myself, so is my best move to meet with a financial advisor from a random company? I wouldn't know the difference between Edward Jones from Northwestern to Raymond James. Sorry for the long explanation, and thanks in advance.
Post Mon Apr 17, 2017 2:11 am
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oldguy
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quote:
I don't trust enough to invest it myself, so is my best move to meet with a financial advisor from a random company?


No, most of us had to educate ourselves to become wealthy. And the reason is logical - ie, the generic US Market (measured by the SP500 Index) has a longterm average return of 11%/yr. So an advisor and/or planner must get a 13%/yr return (11% for you and 2% for overhead) from that same population of US stocks. And that is an almost impossible task - about 85% are unable to do it - and the 15% who do it are not the same people every year. A more direct approach is to buy the unmanaged SP500 Index directly and accept the 11%/yr. (most 401k plans provide that choice).

It's not that difficult - eg, $5000/yr invested at 11%/yr for 35 yrs is $1,900,000. (Sometimes I wonder why so few people do that - eg, you and your employer are probably putting $5000/yr into your 401k? - so you are already on track to ~ $2M.
Set you far-future goal and invest accordingly - if you want $4M, invest $10k/yr, and so on.

John Bogel, the founder of Vanguard, wrote a very direct, concise book on just this subject - The little Book of Common Sense Investing' it's a short read, costs about $15, well worth your time. And it's a good reference book to own.

quote:
start saving for "life", so to speak.


A key item is 'shelter'. If you're in Seattle or San Fran of DC , you could easily spend $2000/m for a small 700 foot apt. Conversely, that apt in Wichita or Des Moines might go for $500/m. Another major expense, cars, is almost region-neutral, a new car in DC is the same price as a new car in Wichita.
Post Mon Apr 17, 2017 2:52 pm
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RecentGrad23
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So it seems like your suggestion for me to start an unmanaged money market account is my best route. Is there an online company that you would recommend? I know that many charge certain fees for trading, similar to the fees that conventional financial advisors would charge. Any suggestions on a company with little to no fees? The reply made this situation much clearer for me, thank you.
Post Mon Apr 17, 2017 3:51 pm
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oldguy
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quote:
many charge certain fees for trading, similar to the fees that conventional financial advisors would charge. Any suggestions on a company with little to no fees?


I like Vanguard and Fidelity, they are 'the big two' for no-load trading. Their fees for their unmanaged SP500 Index Funds is about 0.10% to 0.15%/yr - so the remaining 10.9%/yr is yours.

BTW, 'trading' is to be avoided, a better plan is to 'buy and accumulate' rather than trade in & out. It is liberating to grasp that, it frees you to simply invest rather than having to try to pick winners & losers. Ironically nearly all market literature, books, software, are directed at 'beating' the market. (And, as I said earlier, only 15% of the professional money managers match or beat the market - but they can't stop trying - lol).
Post Mon Apr 17, 2017 5:13 pm
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Barb Carpenter
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The number of people is having the money and they don’t have an bestessays support idea where to invest the money. For those people, they can invest the money in bonds shape or invest the palace where they can make it double like stock, property or other beneficial areas.
Post Fri Apr 21, 2017 6:49 pm
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AnneB
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Ah from what I have observed in my case it is much better to invest in Forex market, if you don't know about it you can take a read with this Investing money forex especially that there are a lot of positive experience from this one.
Post Thu Apr 27, 2017 5:07 am
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anngarnt
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If I were you, I would launch my own business. When I inherited money from my granny, I started up my own beauty salon. To attract more clients, I'm creating a website with help of one of these salon wordpress templates Online presence is a must for any business.
Post Fri Apr 28, 2017 7:40 am
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littleroc02us
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quote:
Originally posted by anngarnt
If I were you, I would launch my own business. When I inherited money from my granny, I started up my own beauty salon. To attract more clients, I'm creating a website with help of one of these salon wordpress templates Online presence is a must for any business.


I removed your link to the website because it is only allowed in your profile signature.

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Fri Apr 28, 2017 1:56 pm
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Cecille Hollinshead
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If you want to get maximum interest from every penny you save, check out this article that i've read http://www.moneysavingexpert.com/savings/which-saving-account
Post Fri May 05, 2017 3:53 am
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JaredDeans
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Post Tue May 23, 2017 12:51 pm
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